A foreign company planning to set up business operations in India has the following two alternatives:


A foreign company can commence operations in India by incorporating a company under the Companies Act, 1956 through:

Joint Ventures.
Wholly Owned Subsidiaries.
Foreign equity in such Indian companies can be up to 100% depending on the necessities of the investor, subject to equity caps in respect of the area of activities under the Foreign Direct Investment (FDI) policy.

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